Lesson 5.11.1

5.11.1 Statement of financial position Quiz: OCR Business, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 5.11.1, Statement of financial position: 20 multiple choice questions for the OCR Business (H431), Unit 5: Accounting and finance, written with Revision Ninja.

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The 20 questions

  1. Which financial statement shows assets, liabilities, and equity at a specific date?

    • Budget variance report
    • Income statement
    • Statement of financial position
    • Cash flow statement

  2. What type of asset is expected to be converted into cash within one year?

    • Current liability
    • Non-current asset
    • Current asset
    • Intangible asset

  3. Which of the following is classified as a non-current liability on a balance sheet?

    • Accrued expenses
    • Bank overdraft
    • Bank loan
    • Trade payables

  4. What is the accounting equation used to balance a statement of financial position?

    • Assets = Revenue - Costs
    • Liabilities = Assets + Equity
    • Assets = Liabilities + Equity
    • Equity = Assets + Liabilities

  5. A firm has total assets of £250,000 and total liabilities of £80,000. What is its net equity?

    • £270,000
    • £130,000
    • £170,000
    • £330,000

  6. Which item represents money owed to a business by its customers for goods sold on credit?

    • Trade payables
    • Bank overdraft
    • Share capital
    • Trade receivables

  7. How is net current assets (working capital) calculated on a statement of financial position?

    • Current liabilities - current assets
    • Current assets - current liabilities
    • Total assets - total liabilities
    • Non-current assets - current assets

  8. Which element of a balance sheet represents the retained earnings and invested funds of business owners?

    • Total equity
    • Non-current assets
    • Capital employed
    • Current liabilities

  9. A business has current assets of £40,000 and current liabilities of £15,000. What is its working capital?

    • £15,000
    • £25,000
    • £30,000
    • £55,000

  10. What is an example of an intangible non-current asset on a statement of financial position?

    • Trade receivables
    • Inventory
    • Machinery
    • Goodwill

  11. A firm holds £100,000 in non-current liabilities and £50,000 in current liabilities. What are its total liabilities?

    • £100,000
    • £200,000
    • £150,000
    • £50,000

  12. Which term describes the gradual reduction in the recorded value of a tangible non-current asset?

    • Depreciation
    • Insolvency
    • Amortisation
    • Liquidation

  13. If total assets are £500,000 and total equity is £300,000, what is the value of total liabilities?

    • £150,000
    • £800,000
    • £200,000
    • £300,000

  14. Which section of the balance sheet lists debts that must be settled within 12 months?

    • Current liabilities
    • Current assets
    • Retained reserves
    • Non-current liabilities

  15. A company buys £10,000 of new machinery using cash. How does this affect total assets?

    • Unchanged
    • Decreases by £10,000
    • Increases by £20,000
    • Increases by £10,000

  16. What is the capital employed formula using net assets and non-current liabilities?

    • Total assets - current assets
    • Current assets + non-current liabilities
    • Net assets + non-current liabilities
    • Net assets - non-current liabilities

  17. A business has current assets of £12,000 and current liabilities of £20,000. What is its working capital?

    • -£32,000
    • -£8,000
    • £8,000
    • £32,000

  18. Which stakeholder group uses the statement of financial position to assess a firm's long-term solvency?

    • Customers
    • Employees
    • Local community
    • Lenders

  19. What happens to total equity when a business generates a profit and retains it?

    • Decreases
    • Becomes zero
    • Increases
    • Remains unchanged

  20. Which line item represents money owed by a business to its suppliers for raw materials bought on credit?

    • Trade payables
    • Debentures
    • Trade receivables
    • Unearned revenue

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